ESCRA Act

Payment Protections: Under Section 3(b)(2), a credit repair organization cannot request or receive payment for services until they provide the consumer with documentation from a consumer reporting agency showing the service was achieved at least 6 months later.

Improved Transparency: Section 4 requires that disclosures include the statement that "Credit repair organizations do not provide any services that you cannot do yourself for free."

Enhanced Information Sharing: Section 5(a) requires that consumers receive copies of all communications sent on their behalf at the time the communication is sent.

Dispute Restrictions: Section 3(c) prevents "jamming" by prohibiting organizations from submitting multiple disputes on the same information unless the previous investigation was completed and the new dispute includes a specific description of inaccuracies.

Increased Accountability for Disputes: Section 7(a)(5) requires a credit repair organization to respond in writing within 15 business days if a person responds to a dispute seeking clarification or verifying engagement.

Consumer Recourse: Section 8(a)(1) expands potential recovery by allowing for damages, including $500 for each violation of the title.

Industry Licensing Requirements: Section 6(e) dictates that as of January 1, 2026, no person may act as a credit repair organization unless they are licensed by a State.

Increased Communication Requirements: Section 7(a) requires that disputes sent by mail must include specific information such as the organization's name and State license number on the envelope, and that all disputes must include a specific disclosure statement.